Econ. Ch. 1
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
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| What does scarcity mean? | Society has limited resources and cannot produce all the goods and services people wish to have.
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| What is economics? | The study of how society manages its scarce resources.
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| What do economists study? | How people make decisions; how people interact with each other; forces and trends that that affect the economy.
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| What is principle 1 of economics? | People face tradeoffs.
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| What are tradeoffs? | To get something that we like, we have to give up something else that we like.
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| What are some common examples of tradeoffs? | Guns and butter; Efficiency and equality
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| What does efficiency mean? | Society is getting maximum benefits from its scarce resources.
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| What does equality mean? | Benefits are distributed uniformly among society's members. (getting the most you can from scarce resources).
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| What is principle 2 of economics? | Cost of something is what you give up to get it.
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| What is opportunity cost? | What you give up to get an item.
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| What is principle 3 of economics? | Rational people think at the margin
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| Who are rational people? | Systematically and purposefully do the best they can to achieve their objectives, given the available opportunities.
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| What is a marginal change? | A small incremental adjustment to a plan of action.
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| How do rational people make decisions? | Comparing marginal benefits and marginal costs.
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| What is principle 4 of economics? | People respond to incentives.
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| What is an incentive? | Something (like punishment or reward) that induces a person to act.
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| What are the first 4 principles categorized under? | How people make decisions
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| What is principle 5 of economics? | Trade can make everyone better off
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| What is principle 6 of economics? | Markets are usually a good way to organize economic activity
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| What is a market economy? | Economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services.
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| What is principle 7 of economics? | Governments can sometimes improve market outcomes.
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| What are property rights? | The ability of an individual to own land exercise control over scarce resources.
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| What is market failure? | Situation in which a market left on its own fails to allocate resources efficiently.
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| What is an externality? | Impact of one person's actions on the well-being of a bystander
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| What is market power? | Ability of a single economic actor to have a substantial influence on market prices.
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| What are principles 5-7 categorized under? | How people interact
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| What are principles 8-10 categorized under? | How the economy as a whole works
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| What is principle 8 of economics? | A country's standard of living depends on its ability to produce goods and services
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| What is productivity? | The amount of goods and services produced by unit of labor input.
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| What is principle 9 of economics? | Prices rise when the government prints too much money
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| What is inflation? | Increase in the overall prices in the economy
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| What is principle 10 of economics? | Society faces a short-run trade-off between inflation and unemployment
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| What is a business cycle? | Fluctuations in economic activity, such as employment and production.
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You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
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salem050
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